Correlation Between Grand Korea and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Grand Korea and Iljin Display at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Grand Korea and Iljin Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Korea Leisure and Iljin Display, you can compare the effects of market volatilities on Grand Korea and Iljin Display and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Grand Korea with a short position of Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Korea and Iljin Display.
Diversification Opportunities for Grand Korea and Iljin Display
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grand and Iljin is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Grand Korea Leisure and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display and Grand Korea is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Grand Korea Leisure are associated (or correlated) with Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of Grand Korea i.e., Grand Korea and Iljin Display go up and down completely randomly.
Pair Corralation between Grand Korea and Iljin Display
Assuming the 90 days trading horizon Grand Korea Leisure is expected to under-perform the Iljin Display. But the stock apears to be less risky and, when comparing its historical volatility, Grand Korea Leisure is 1.45 times less risky than Iljin Display. The stock trades about -0.04 of its potential returns per unit of risk. The Iljin Display is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 128,600 in Iljin Display on November 1, 2024 and sell it today you would lose (40,100) from holding Iljin Display or give up 31.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Korea Leisure vs. Iljin Display
Performance |
| Timeline |
| Grand Korea Leisure |
| Iljin Display |
Grand Korea and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Korea and Iljin Display
The main advantage of trading using opposite Grand Korea and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Korea position performs unexpectedly, Iljin Display can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Iljin Display will offset losses from the drop in Iljin Display's long position.| Grand Korea vs. Daol Investment Securities | Grand Korea vs. Jeju Air Co | Grand Korea vs. INFINITT Healthcare Co | Grand Korea vs. Golden Bridge Investment |
| Iljin Display vs. SM Entertainment Co | Iljin Display vs. ChipsMedia | Iljin Display vs. INNOX Advanced Materials | Iljin Display vs. Next Entertainment World |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |